Crest View International has commented on Walmart Stores Inc as they warned on Wednesday that higher wages as well as spending on e-commerce and lower prices would cut earnings per share as much as 12 percent next fiscal year, sparking the steepest one-day decline in the company’s shares in 25 years.

Walmart faces tough competition on multiple fronts, from the relentless expansion of online leader Amazon.com Inc to dollar stores and supermarkets fighting for a piece of its grocery business. Its international operations are also under pressure with a stronger dollar eating into sales reported analysts from Crest View International.

Walmart Chief Executive Doug McMillon said a $1.5 billion investment in wages and training, including raising the minimum store wage to $10 an hour from $9, were needed to improve customer service and would account for three-quarters of the expected 6 percent to 12 percent drop in earnings per share next year.

Walmart also announced a $20 billion share buyback but the drop in its share price wiped out close to the same amount in market value, and the 10 percent drop was the worst one-day percentage performance since January 1988.

“The decline in Walmart shares pulled down the Dow Jones Industrial Average, accounting for a quarter of the 1 percent drop in the index.” Commented Michael Kennedy, Head of Corporate Trading at Crest View International.

The world’s largest retailer by revenue said it would invest several billion dollars to lower prices over the next three years. That sparked worries of a price war, and shares of rivals including Target and Home Depot also fell.

“Walmart can deliver stronger financial performance in the short-term simply by running its core business better but that won’t be enough,” Commented Robert Woods, Senior Vice President at Crest View International.

The company forecast earnings per share would grow 5-10 percent in the fiscal year ending in January 2019.

Walmart Stores said current fiscal full-year sales would be flat due to the stronger-than-anticipated impact of the dollar. It had previously forecast net sales growth of 1-2 percent for the current fiscal year ending January.